Exercise 16 Employee Exit Interview - DOC

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					Free Methodist Church of North America




    EMPLOYEE
  HANDBOOK

               December 2001
                                         TABLE OF CONTENTS
Welcome ............................................................................................................................................1
Theological and Historical Statement ............................................................................................2
Statement of Faith ............................................................................................................................3
Vision and Mission Statements .......................................................................................................3
Organization .....................................................................................................................................4
       Board of Administration .....................................................................................................4
       Board of Bishops ..................................................................................................................4
       Executive Directors and Directors .....................................................................................4
       Leadership Teams ...............................................................................................................5
          Board of Bishops ............................................................................................................5
          Operating Committee (OC) ..........................................................................................5
          Executive Leadership Team (ELT) ..............................................................................5
       Friendship Club ...................................................................................................................5
Organizational Chart (See page 26) ...............................................................................................5
Employment Policies ........................................................................................................................5
       Introduction ..........................................................................................................................5
       Harassment ...........................................................................................................................6
          Sexual Harassment.........................................................................................................6
          Harassment based on Race, Color, Religion, Gender, National Origin,
          Disability or Veteran Status ..........................................................................................7
       Classifications .......................................................................................................................8
          Salaried Exempt .............................................................................................................8
          Salaried Non-exempt .....................................................................................................8
          Hourly .............................................................................................................................8
          Full-time Employee ........................................................................................................8
          Regular Part-time Employee ........................................................................................8
          Temporary Employee ....................................................................................................8
       Compensation and Benefits .................................................................................................9
          Salary Schedule ..............................................................................................................9
          Overtime Pay ..................................................................................................................9
          Compensatory Time.......................................................................................................9
          Holidays ..........................................................................................................................9
          Vacation ..........................................................................................................................10
          Pension ............................................................................................................................10
          Length of Employment ..................................................................................................10
          Sick Leave .......................................................................................................................11
          Personal Days .................................................................................................................11
          Family Leave ..................................................................................................................11
          Funeral Leave .................................................................................................................13
          Medical Insurance ..........................................................................................................13
          Life and Long Term Disability Insurance ...................................................................14
          Supplemental Group Term Life Insurance .................................................................14
          FLEXPRO ( Section 125 Cafeteria Plan).....................................................................14
          Social Security ................................................................................................................14


                                                                     i
   Workers Compensation .................................................................................................14
   Continuing Education....................................................................................................14
   Training Reimbursement Policy ...................................................................................15
   Travel ..............................................................................................................................15
   Break Periods .................................................................................................................15
   Snow Days .......................................................................................................................15
   Worship...........................................................................................................................15
   Jury Duty ........................................................................................................................15
   Light and Life Bookstore Discount ..............................................................................15
Other .....................................................................................................................................15
   Americans with Disabilities Act (ADA) .......................................................................15
   Probationary Period ......................................................................................................16
   Personal Employment Data ..........................................................................................16
   Employee Benefits Review Committee.........................................................................16
   Employment of Relatives ...............................................................................................17
   Dress Guidelines .............................................................................................................17
   Computer Usage Policy .................................................................................................17
   Work Guidelines ............................................................................................................18
   Working at Home ...........................................................................................................18
   Unemployment Compensation ......................................................................................18
   Personal Business ...........................................................................................................19
   Lifestyle and Conduct ....................................................................................................19
   Voting ..............................................................................................................................19
   Absences ..........................................................................................................................19
   Leave of Absence ............................................................................................................19
   Minors in the Workplace...............................................................................................19
   Telephones ......................................................................................................................19
   Company Equipment .....................................................................................................19
   Accident Reporting .......................................................................................................20
   Lost and Found ..............................................................................................................20
   Safety ...............................................................................................................................20
   Solicitation ......................................................................................................................20
   Visitors ............................................................................................................................20
   Fire Prevention ...............................................................................................................20
   Records Retention ..........................................................................................................20
Performance Reviews ..........................................................................................................20
Grievance Procedure ...........................................................................................................21
Resignation or Termination of Employees ........................................................................23
Severance Pay .......................................................................................................................24
Retirement ............................................................................................................................24
   Age Considerations ........................................................................................................24
   Pension ............................................................................................................................24
   Medical Insurance ..........................................................................................................24
Additional Benefit Policies for Bishops, Executive Dir. & Directors ..............................24
Enrichment Leave ................................................................................................................24
Health/Wellness ....................................................................................................................25



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     Honoraria..............................................................................................................................25
     Ministry Time .......................................................................................................................25
     Moving Expenses..................................................................................................................25
Acknowledgement of Receipt of Handbook ..................................................................................27




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Dear Co-worker:

Welcome to ministry in the Free Methodist Church of North America. We hope you
will feel at home immediately.

Our work strengthens every ministry of the church and makes us partners to ministers,
teachers, missionaries, and Christian workers everywhere. It is important that every
person has work in life that is significant and meaningful. We trust you will find your
work here satisfying as you do your part in fulfilling the mission of the church of Jesus
Christ.

This Employee Handbook has been prepared for you. Please read it completely and
carefully. It should be kept throughout your employment. It will be updated by the
Operating Committee or Board of Administration from time to time and you will be
provided with a copy of each update. Any major policy changes by the Operating
Committee will be reported to the Board of Administration. Should you have
questions, please feel free to consult with your immediate supervisor, a member of the
Operating Committee, or the Human Resources office.

We welcome you and wish you a successful ministry with us at the Free Methodist
World Ministries Center.

Yours in Him,


Joseph F. James
Chairman, Operating Committee




                                            1
     THEOLOGICAL AND HISTORICAL STATEMENT

Our theological position, described in terms of today’s distinctions, is Arminian,
Wesleyan, and evangelical. In the Free Methodist Church, emphasis is placed on a
personal relationship with God through Christ. This relationship is established by the
new birth, accompanied by the witness of the Spirit, and followed by growth in grace,
entire sanctification, and a life filled with the Holy Spirit--in which the motive of perfect
love guides in day-to-day relationships.

Historically, we relate to early American Methodism, the Wesleyan Movement in
England, and to the Church of England phase of the Reformation rather than to the
Continental Reformation. Breadth and definiteness combine to produce today’s
balanced position. For example, baptism is required, but the individual may choose the
mode. Furthermore, the individual is not forced to a dogmatic position regarding
future events in the church and the world, such as post-, pre-, a-millennial views. The
Free Methodist Church encourages fellowship with Christians of other denominations,
thus achieving cooperation without compromise.

The Free Methodist Church had its origin over 140 years ago as a movement toward
Methodist reform and renewed Wesleyan revival. Its founding generation did not
quibble about a cause, for very clearly to them their cause was the spread of Scriptural
holiness over these lands. To that generation of reformers and crusaders, Scriptural
holiness meant:

       1.     The Scriptural doctrine of entire sanctification according to the Wesleyan
              interpretation;
       2.     A corresponding inner experience of cleansing and power;
       3.     Spirituality and simplicity of worship in the freedom of the Spirit;
       4.     A way of holy living that separates sharply the Christian from the world;
       5.     Full consecration for service to God and man.

Free Methodists are a fellowship of Christians in earnest to get to heaven and
committed to working in the world for the salvation of all men. They place their
commitment to Christ and His church above all others. Regarding the name “Free,” we
quote again from Marston’s book (page 264):

“Puzzled as are many today to understand the significance of the name Free Methodist,
there was no question about its relevance a century ago. The issues of the church’s
founding included so many freedoms that it would have been difficult to attach to it any
other name. Free seats in their houses of worship had already given independent
churches of the reform group the name “Free Methodist.”… Freedom from slavery was
also a well-known issue of the reformers. And there were other freedoms for which the
reformers were noted; such as, freedom from the oath-bound lodge, freedom from
ecclesiastical domination, the gospel of freedom from sin, and freedom of the Spirit in
worship. The church came by its name legitimately and appropriately. Today the


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church continues to hold out to the world its New Testament message of freedom from
sin and God’s freeing power to serve Him fully.”

Significant Events

   1860 The Free Methodist Church was organized at Pekin, New York.
   1868 First issue of The Free Methodist was published January 9, with Levi Wood
        as editor and publisher (now called Light and Life magazine).
   1886 Founding date of the Free Methodist Publishing House. Location: 104-106
        Franklin Street, Chicago, Illinois; T.B. Arnold, first publishing agent.
   1897 First issue of the Missionary Tidings published by the women’s organization
        (now called People magazine).
   1934 Winona Lake Property was purchased--15 acre campus and large brick
        building
   1935 The Publishing House was moved to Winona Lake, Indiana.
   1960 Centennial General Conference
   1970 The Westminster Hotel was purchased and named “The International
        Friendship House.”
   1990 Free Methodist Headquarters moved to Indianapolis and was named Free
        Methodist World Ministries Center.

STATEMENT OF FAITH

We believe the Bible is God’s written Word, uniquely inspired by the Holy Spirit. It
bears unerring witness to Jesus Christ, the Living Word. The Bible has authority over
all human life.
We believe that there is one God, eternally existent in three Persons: Father, Son, and
Holy Spirit.
We believe in the deity of our Lord Jesus Christ, in His virgin birth, in His sinless life,
in His miracles, in His vicarious and atoning death through His shed blood, in His
bodily resurrection, in His ascension to the right hand of the Father and in His personal
return in power and glory.
We believe that for the salvation of lost and sinful man regeneration by the Holy Spirit
is absolutely essential.
We believe in the present ministry of the Holy Spirit by whose indwelling the Christian
is enabled to live a godly life.
We believe in the resurrection of both the saved and the lost; they that are saved unto
the resurrection of life and they that are lost unto the resurrection of damnation.
We believe in the spiritual unity of believers in our Lord Jesus Christ.

VISION AND MISSION STATEMENTS

Vision Statement The Free Methodist Church: A healthy biblical community of holy
people who are multiplying disciples, leaders, groups, and churches.




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Mission Statement The mission of the Free Methodist Church is to make known to all
people everywhere God’s call to wholeness through forgiveness and holiness in Jesus
Christ, and to invite into membership and to equip for ministry all who respond in
faith.

World Ministries Center Mission Statement The mission of the Free Methodist World
Ministries Center is to provide vision, leadership, service, and resources which assist
local congregations in fulfilling the mission of the Free Methodist Church in their
communities, annual conferences, and around the world.

ORGANIZATION

Board of Administration

The Free Methodist Church of the North America General Conference is the legislative
body of the church. The Board of Administration is the administrative body of the
church by the authority delegated by the General Conference. In organizing its work
the Board of Administration has established standing committees (Budget and Finance,
Benefits, Communications, Nominating and World Missions). These committees are
accountable to the board under whose direction they work.

The Executive Director of Free Methodist World Missions serves on the World
Missions Committee. The Executive Director of Free Methodist Communications
serves on the Communications Committee. The Executive Director of Administration
and Finance serves on the Budget and Finance Committee and Benefits Committee.

The chair of the Operating Committee reports to the General Conference and to the
Board of Administration. Annually, executive directors report to the Board of
Administration. Executive directors are available as resource persons for the Board of
Administration.

Board of Bishops

The Board of Bishops provides general leadership and is charged with both spiritual
and temporal oversight of the church. The implementation of their vision for the
church requires the support of the entire World Ministries Center leadership team.
Good communication is essential. Executive directors work in close consultation with
the Board of Bishops through the chair of the Operating Committee. As bishops share
their vision for the church, executive directors respond with ministry strategies which
help make that vision a reality. Bishops serve on the committees of the Board of
Administration. Any concerns or directives of the bishops which relate to the work of a
particular ministry area will be shared with the appropriate executive director prior to
presentation to the committee.

Executive Directors and Directors




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It is the responsibility of the executive director to give leadership to his/her ministry
area and facilitate a good working relationship between individuals and ministry areas.
Executive directors and directors work together as a team giving leadership in their
assigned ministries. The executive director is responsible for the programs, service and
budgetary matters within his/her ministry area. The plans, programs and expenditures
of a director are to be approved by their supervising executive director. Executive
directors are to keep the overseer informed of their dreams, visions, plans, work flow
and field response. The creative input of directors in fulfilling the vision of the church
is valued. Support for their supervising executive director is essential.

Leadership Teams

At the World Ministries Center the responsibility for the mission of the Free Methodist
Church of North America rests primarily with three leadership teams: the Board of
Bishops, the Operating Committee (OC), and the Executive Leadership Team (ELT).

      Board of Bishops – serves as the General Leadership Team as general
       superintendents, exercising spiritual and temporal oversight of the church which
       includes supervisory responsibility for the direction and well being of the Free
       Methodist Church of North America.
      Operating Committee – (Executive Directors and Overseer) is responsible to
       coordinate the general church ministries through the World Ministries Center
       consistent with the vision of the General Leadership Team. The Operating
       Committee develops policies leading to the efficient and effective operation of the
       Center.
      Executive Leadership Team – (Executive Directors, Directors, Auxiliary Leaders,
       and Overseer) reports on ministry initiatives and coordinates ministries in
       fulfilling the mission of the World Ministries Center.

Friendship Club

The purpose of the Friendship Club is to promote good fellowship and physical and
spiritual well being among our World Ministries Center employees by means of
planned activities. Members, who are employees, pay an annual fee and this amount is
matched by the administration to help fund the club. By being a part of this club,
members obtain discounts to area businesses along with travel discounts for hotels,
events and amusement parks.          The Friendship Club is composed of three
subcommittees: Activities, Spiritual Life, and Wellness Committees. These committees
plan activities such as monthly chapels, holiday celebrations, summer cookouts, Secret
Friends, Employee Appreciation Day, and National Health/Fitness Day.

EMPLOYMENT POLICIES

Introduction




                                            5
Employment policies covered in this manual are for employees of the Free Methodist
Church of North America. Employees have the right to work in surroundings that are
free from all forms of unlawful discrimination. It is the policy of the Free Methodist
Church to comply with all applicable laws and regulations relating to the employer-
employee relationship, it being recognized that as a church it has certain areas of
immunity because of the First Amendment.

The employment policy is an open-door policy under which each employee may deal
directly with management with reference to working conditions. No employee is
required to obtain any other person or organization to represent him/her in the
presentation of grievances, problems, or questions of application of working policies in
discussion with management. No employee needs to pay to any person or to any
organization dues or other assessments for the right to work here. The management
has attempted to provide good conditions of employment, satisfactory equipment, and
an opportunity for advancement.

Employees, as a part of this ministry, are a part of our public relations team. They
contribute to our image in the community, with visitors, and with all whom we serve. It
is understood that those who accept employment with us will assist us in fulfilling our
ministry and will treat our doctrines and standards with respect. As employer, we are
thankful for the intelligence, creativeness, suggestions, and critiques of employees in
assisting the church in finding better ways to serve the church more effectively.

Employees are encouraged to bring business problems to the attention of their
supervisor who will assist, whenever possible, in resolving these problems.

You and your fellow employees do much to determine the success of the Free Methodist
Church. Your industry and genius are essential to our total ministry. You are a
valuable asset. A complete understanding between you and your employer is always
desired. Your confidence and satisfaction will make your working relationship pleasant
and productive. During the first several weeks of your employment you will have
opportunity to get acquainted, ask questions, and assure yourself that this is God’s
place for you. Your supervisor and fellow employees are ready to help in your initial
adjustments.

All personnel are expected to work together to fulfill the mission of the Free Methodist
Church. Good judgment, coupled with a spirit which cares enough to confront in love
when differences arise, will prove a strong foundation for sound, healthy relationships
all around. The aim is healthy biblical community.

Finally, the provisions laid out in this employee handbook do not constitute a contract of
employment. The Free Methodist Church is an at-will employer. Your employment may be
terminated with or without cause at any time. Work schedules and work assignments are at
the sole discretion of the employer.




                                            6
HARASSMENT

Sexual Harassment

It is the policy of the Free Methodist Church of North America to provide an
environment free from sexual and sex-based harassment. It is unchristian and
unacceptable for any employee, whether a manager, supervisor, or co-worker, to
sexually harass another employee. Sexual harassment or sex-based harassment occurs
when unwelcome conduct of a sexual nature becomes a condition of an employee's
continued employment, affects other employment decisions regarding the employee, or
creates an intimidating, hostile, or offensive working environment.

Sexual and sex-based harassment may include: requests for sexual favors; unwanted
physical contact, including touching, pinching, or brushing the body; verbal
harassment, such as sexual innuendoes, suggestive comments, jokes of a sexual nature,
sexual propositions, and threats; non-verbal conduct, such as display of sexually
suggestive objects or pictures, leering, whistling, or obscene gestures; and acts of
physical aggression, intimidation, hostility, threats, or unequal treatment based on sex
(even if not sexual in nature).

Any employee who believes he or she has been sexually harassed should report the
conduct immediately to his or her supervisor or, if that individual is responsible for the
harassment, to the Director of Human Resources, the Director’s designee, or to a
member of the Operating Committee. The employee always has the option of reporting
the conduct directly to the Director of Human Resources, the Director’s designee, or to
a member of the Operating Committee if he or she prefers.

A thorough and impartial investigation of all complaints will be conducted in a timely
and confidential (to the extent possible) manner. Any employee who has been found,
after appropriate investigation, to have sexually harassed another employee will be
subject to disciplinary action up to and including discharge.

Harassment based on Race, Color, Religion, Gender, National Origin, Age, Disability or
Veteran Status

The Free Methodist Church of North America expects all employees to accomplish their
work in a Christian and professional manner. The Free Methodist Church of North
America believes that its employees should be able to enjoy a workplace free from all
forms of discrimination, including harassment on the basis of race, color, religion,
gender, national origin, age, disability, and veteran’s status. Harassment of employees
by fellow employees is unchristian and a form of unlawful discriminatory behavior and
is not permitted regardless of working relationships. It is against the policy of the
Church for any employee, whether a manager, supervisor, or coworker, to harass
another employee. Prohibited harassment occurs when verbal or physical conduct that
defames or shows hostility toward an individual because of his or her race, color,
religion, gender, national origin, age, disability or veteran’s status, or that of the


                                             7
individual's relatives, friends, or associates; creates or is intended to create an
intimidating, hostile, or offensive working environment; interferes or is intended to
interfere with an individual's work performance; or otherwise adversely affects an
individual's employment opportunities.

Harassing conduct includes, but is not limited to: epithets, slurs, negative stereotyping,
or threatening, intimidating or hostile acts, which relate to race, color, religion, gender,
national origin, age, disability, or veteran status. Written or graphic material that
defames or shows hostility or aversion toward an individual or group because of race,
color, religion, gender, national origin, age, disability, or veteran status and that is
placed on walls, bulletin boards, or elsewhere, or that is circulated in the workplace.

Any employee who believes he or she has been harassed in violation of this policy
should report the conduct immediately to his or her supervisor; or, if that person is
responsible for the harassment, to the Director of Human Resources, the Director’s
designee, or a member of the Operating Committee. The employee always has the
option of reporting the conduct directly to the Director of Human Resources, the
Director’s designee, or a member of the Operating Committee if he or she prefers.

A thorough and impartial investigation of all complaints will be conducted in a timely
and confidential (to the extent possible) manner. Any employee who has been found,
after appropriate investigation, to have harassed another employee in violation of this
policy will be subject to disciplinary action up to and including discharge.

Classifications

Each employee receives one of the following classifications, which may be changed
when appropriate.

      Salaried Exempt An employee who is paid a fixed salary on a weekly, monthly or
       annual basis rather than an hourly wage and meets the criteria for exclusion
       from the wage and hour laws (e.g., administrative, management and
       professional). An exempt employee does not receive overtime for hours worked
       over 40 hours per week. Due to the nature and scope of exempt positions, a
       certain amount of work beyond the normal workweek is expected as business
       demands require. Compensatory time is allowed for these situations (see
       Compensation and Benefits that follows).
      Salaried Non-exempt An employee who is paid a fixed salary, based on an hourly
       wage, and who is not exempt from a minimum wage, overtime, and timecard
       provisions of the Fair Labor Standard Act (Wage-Hour Law) as amended.
       These employees receive overtime pay for work over 40 hours per week.
      Hourly An employee who is paid based on an hourly rate and who is not exempt
       from minimum wage, overtime and timecard provisions of the Fair Labor
       Standard Act (Wage-Hour Law) as amended. These employees receive overtime
       pay for work in excess of 40 hours per week.



                                             8
In addition, each employee is classified in one of the following categories:

      Full-time Employee One who normally works 40 hours a week. Includes all
       benefits.
      Regular Part-time Employee One who is employed less than 40 hours each week
       continuously. Benefits are prorated based on the average number of hours
       worked.
      Temporary Employee One who is employed intermittently or for a short period
       of time. No benefits are included.


COMPENSATION AND BENEFITS

Salary Schedule A salary schedule gives guidance in determining the salary for each
employee, other than bishops and executive directors whose salaries are set by the
Board of Administration and director’s whose salaries are set by their supervisor in
consultation with the Operating Committee.

Overtime Most non-exempt personnel are employed for a 40-hour workweek.
Overtime is occasionally necessary, but is discouraged in the interest of your family,
community, and church activities as well as your own well being on the job. When
overtime reaches the point where another employee is needed, action will be taken to
employ additional help rather than continue excessive overtime.

Work in excess of 40 hours per week will be only at the discretion of the supervising
executive director or director and must be specifically authorized in advance. Any
overtime claimed on a time sheet must be specifically initialed by the employee’s
supervisor each day overtime is worked. For all hours worked in excess of 40 hours in
any regular workweek, including a regular paid holiday (but excluding personal leave
days, sick time, and vacation days), the employee will be paid at time and one-half of
the employee’s regular rate. Non-exempt salaried personnel may be given unpaid
compensatory time off at the equivalent of time and one-half of the employee’s regular
rate, but it must be taken during the same pay period in which the overtime is incurred.

When overtime is necessary the supervisor will ask the employee to put in extra hours
as needed. If the employee cannot work extra, or if the work is of a general nature that
certain others might do as well, a fair distribution will be made of the extra time to
employees in the ministry area who qualify.

Compensatory Time Salaried exempt employees who work more than 40 hours per week
are allowed comparable time off, up to one comp day per month. Any exceptions to this
must be approved by the immediate supervisor. The need to work in excess of 40 hours
in a week, and therefore the accrual of compensatory time off, should be
discussed/approved in advance where practicable with the employee’s immediate
supervisor.



                                             9
Holidays A full-time employee receives eleven (11) days of paid holidays annually.
Holiday pay is pro-rated for part-time employees who work 20 hours per week but less
than 40 hours per week.

The holidays are: New Year’s Day, Martin Luther King, Jr. Day, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving and the Friday following,
December 24, Christmas Day, and December 26.

When a paid holiday falls on Saturday, the holiday time will be taken on Friday. When
it falls on Sunday, the time will be taken on Monday. Three working days off will be
given if Christmas falls on a weekend. When a holiday occurs during a vacation period,
the holiday time will be added to the vacation time.

Vacation Paid vacations for full time employees are provided on the basis of the
employee’s base salary. During a partial calendar year of employment, earned vacation
time is pro-rated based on the amount of vacation time to which the employee would
otherwise be entitled had the employee worked a full calendar year. (For example, an
employee hired on July 1, Year 1, would receive one week of paid vacation for use in
Year 2.) Paid vacations for part-time employees ( 20 hours or more per week) are pro-
rated based on the hours of employment.

Following an employee’s first full calendar year of employment (January 1 – December
31), the employee is eligible for two weeks of vacation; after 5 years, 3 weeks; after 10
years, 4 weeks. Executive directors and directors are eligible for four weeks of vacation
following the first full calendar year of employment. Paid vacation time must be taken
in the year following the year in which it was earned. Unused vacation time is forfeited
at the end of the year; it does not carry over to the next year, nor, except as provided
below, will it be paid out at the end of the year.

Vacations are requested in writing and scheduled in consultation with the supervisor.
In case of an emergency, should a supervisor ask the employee to forego vacation, the
employee will receive vacation pay in addition to regular pay. Employees are urged to
take at least one full week of vacation at one time. The remainder of an employee’s
eligible vacation time may be taken in increments of no less than four-hour segments.
Previous work with a Free Methodist College, annual conference, or missionary service
is credited as years of employment for vacation accrual purposes.

Pension The Free Methodist Church of North America has a defined benefit pension
plan that offers each participant a retirement benefit based on a pre-determined
formula. This is an employer contribution plan on behalf of the employee.

To qualify, an employee must work a minimum of twenty-five (25) hours per week. The
primary purpose of the plan is to provide for retirement income needs. The plan also
provides benefits to the employee or the employee’s beneficiary in the event of disability
or death. Vesting in the plan begins after completing five (5) years of credited service.
According to the following schedule:


                                           10
              less than 5 years            0% vested
              5, but less than 6 years     50% vested
              6, but less than 7 years     60% vested
              7, but less than 8 years     70% vested
              8, but less than 9 years     80% vested
              9, but less than 10 years    90% vested
              10 or more years             100% vested

Length of Employment The time of employment is computed in total years of service.
Pension may be reinstated if the employee returns within five years. (See Article VIII
of Pension Plan document.) An employee transferring from one ministry area to
another retains benefits accruing as follows:

      Pension. The ministry area involved in employment assumes responsibility on a
       pro-rated basis for consecutive years of service.
      Service plaques. Plaques are given to employees on the cumulative basis for
       total years of service in all ministry areas.
      Vacations. Transferees do not lose accumulated service credit. In the transfer,
       the vacation obligations for the current year are assumed on a pro-rated basis by
       the ministry area involved.

Sick Leave At the beginning of each year, full-time employees will receive eighty (80)
hours (10 days) of sick leave, not to exceed 45 days. No additional hours of sick leave
will accrue until an employee’s accumulated sick time falls below 45 days. A part-time
employee working at least twenty (20) hours but less than forty (40) hours will be
credited with a pro-rated number of hours of sick leave, cumulative to 45 days. At the
end of a new employee’s probationary period, he/she will be given a pro-rated number
of sick days retroactive to his/her date of hire. Sick leave may be used for a sick child,
sick spouse, sick parent, a person’s own sickness, or a sick babysitter. Sick leave must
be taken in increments of at least one (1) hour and will be paid up to a maximum of
eight (8) hours per day. Sick leave covers travel time to and from the doctor’s office.
Unused sick time is forfeited upon an employee’s separation of employment.

Personal Days Up to two (2) days personal leave may be taken annually and charged
against sick leave. Personal leave must be taken in one-hour increments and will only
be paid up to eight (8) hours per day. When it is necessary, an employee may arrange
with his/her supervisor for additional time off without pay to attend to matters of
personal business.

Family Leave The Free Methodist Church of North America complies with the Family
and Medical Leave Act (“FMLA”). Under the FMLA, eligible employees are entitled to
certain rights, and have certain obligations, with respect to unpaid leave for certain
family and medical reasons. An eligible employee under the FMLA is an employee who
has been employed by the Church for at least 12 months, who has worked at least 1,250



                                            11
hours in the past 12 months, and who works at a facility in which at least 50 employees
are employed by the Church either at that facility or within 75 miles of that facility.

An eligible employee may take FMLA leave of up to 12 weeks per leave year, for any of
the following reasons: to care for a newborn child, or a child newly placed in the
employee's custody through adoption or foster care, for a period of up to one year after
such birth or placement; to care for the employee's spouse, child, or parent who has a
serious health condition; or because of the employee's own serious health condition, if
that condition renders the employee unable to perform his or her job functions. Any
leave taken by an eligible employee for one or more of these reasons will be counted
against that employee's annual FMLA leave entitlement. For the purpose of
determining whether an eligible employee or his or her spouse, child, or parent has a
serious health condition, such a condition includes any injury, illness, impairment, or
physical or mental condition that requires either in-patient care in a medical facility
(i.e., overnight hospitalization), or continuing treatment by a health-care provider.
These terms are construed by the Free Methodist Church of North America in
accordance with applicable federal laws and regulations.

For the purpose of this policy, the leave year within which an eligible employee may
take his or her 12 weeks of FMLA-protected leave means the 12-month period
beginning on the date the employee first takes leave for any of the reasons set forth
previously.

Generally, FMLA leave is not paid. However, an eligible employee may elect to take
any accrued paid vacation leave or, for personal medical leave, paid sick days
contemporaneously with taking unpaid leave under the FMLA. Such paid leave will be
counted towards the employee's 12 weeks of FMLA leave granted per leave year. In the
case of leave taken to care for a seriously ill spouse, child, or parent; or due to the
employee's own serious health condition, an employee may take leave intermittently
(i.e., periodically) or on a reduced hours schedule (i.e., reduced number of working
hours per day or per week) only when such leave is medically necessary, as certified by
the employee's or family member's health-care provider. Otherwise, such leave is not
permitted except at the sole discretion of the Church. An employee who takes leave
intermittently or on a reduced leave schedule may be temporarily transferred to
another position for which the employee is qualified to better accommodate that leave.

An eligible employee who takes leave under the FMLA and who returns to work before
his or her annual FMLA entitlement has expired will be restored to the position he or
she held when the leave commenced, or to an otherwise equivalent position with respect
to pay, benefits, and other terms and conditions of employment, unless the employee
would no longer have been employed in such a position had the employee not taken
such leave. Additionally, any unused employment benefits that had accrued to an
eligible employee prior to the commencement of leave will be restored upon return
from FMLA leave.




                                           12
Group health plan coverage will be maintained by Free Methodist Church of North
America during an eligible employee's period of FMLA leave to the extent and under
the same circumstances as it ordinarily is furnished to that employee. Premium
payments should be made to the human resources office on or before the 28th day of
each month. A human resources employee will notify eligible employees concerning the
amount of each premium payment. Failure to pay such premiums during leave may
result in the loss of health coverage. An eligible employee who fails to return to work
after the expiration of the FMLA leave period for reasons that are not beyond his or
her control will be expected to reimburse the Church for health-care premiums paid by
the Church during the leave period.

An eligible employee must give the Church at least 30-days' notice of the employee’s
intent to take leave under the FMLA. If the employee is unable to give such notice
because the need for leave is not foreseeable, then the employee must give as much
notice as practicable. Typically, this will mean giving notice to the Church within one
or two working days of learning that FMLA leave must be taken. Any employee who
fails to give the requisite notice may be delayed in receiving authorization for leave.

In cases of leave to be taken to care for a seriously ill family member or due to the
employee's own serious health condition, an eligible employee must provide the Church
with a completed and signed health-care-provider certification indicating that the
employee requires FMLA leave. This certification must be returned to the Church
within 15 days after the employee gives notice of his or her intent to take FMLA leave,
and must contain the following information: the date on which the serious health
condition commenced; the probable duration of the condition; the treatment regimen
prescribed; any appropriate medical facts within the health-care-provider's knowledge
regarding the condition; if applicable, a statement that the employee is needed to
provide care for his or her spouse, child, or parent and an estimated duration of such
need; and, if applicable, a statement regarding the medical necessity of intermittent or
reduced hours schedule leave. Failure to return this certification in a timely manner
may result in delays in securing authorization for leave, and failure to return the
certification at all will preclude the employee from taking leave.

The Church also may require, at its own expense, a second and third
health-care-provider opinion if there is a question as to the validity of the certification
provided by the employee. An eligible employee also may be asked to furnish the
Church with subsequent health-care-provider certifications on a reasonable basis
during the employee's leave period. An eligible employee's failure to furnish subsequent
certifications may result in termination of the employee's right to leave. An eligible
employee on FMLA leave must submit to the Church a medical release (i.e.,
fitness-for-duty certification) indicating that the employee is able to return to work.
Failure to submit such a release will preclude the employee from being restored to his
or her employment with the Church.

The Free Methodist Church of North America will not: (1) interfere with, restrain, or
deny the exercise of any right provided under the FMLA; (2) discharge or discriminate


                                            13
against any person for opposing any practice made unlawful by the FMLA; or (3)
discharge or discriminate against any person for his or her involvement in any
proceeding under or relating to the FMLA.

Funeral Leave Up to five working days leave with pay may be given, in consultation
with the department head, on the death of a spouse, son, daughter, parent, sister,
brother, grandchild, grandparent, or member of the employee’s household. These
guidelines include in-law relationships. Extra days off without pay may be arranged as
necessary with the approval of the supervising executive director or director.
Employees may be excused to attend the funeral of a fellow employee on company time.
Employees may arrange to take time off for other funerals with the approval of the
immediate supervisor. Personal time or leave without pay may be used. In addition,
time off for these funerals may be made up, if approved by the executive director or
director.

Medical Insurance Group medical insurance coverage is available to full-time and part-
time employees (working a minimum of 25 hours per week) on the first day of active
continuous employment. The insurance benefit covers sickness, accidents,
hospitalization, and surgery. The employee’s contribution through payroll deduction
equals one-half of the premium cost. Questions regarding insurance coverage or forms
may be referred to the Human Resources office.

Life and Long-Term Disability Insurance Life and long-term disability coverage is
provided by the employer at no cost to the employee (working a minimum of 25 hours
per week).

Supplemental Group Term Life Insurance is designed as supplementary insurance and is
provided by the employer to full-time employees and part-time employees (working a
minimum of 25 hours per week) on the first day of active continuous employment. The
employer pays 50% of the premium for coverage for up to twice the employee annual
salary to a maximum of $50,000 for all coverages. It is not to be considered as an
adequate life insurance program. It is particularly valuable to the employee during the
heaviest of years of family and financial responsibility. Group term insurance coverage
does not continue after retirement. Information on group term life insurance is
supplied by the Human Resources office.

FLEXPRO (Section 125 Cafeteria Plan) FLEXPRO is a flexible compensation program
available to each employee (working a minimum of 25 hours per week). This three-part
benefit is based on a provision in the Internal Revenue Code which allows you to
increase your take-home pay by decreasing your taxable income.
In Part I, Premiums, your employee contribution for medical and dental benefits are
paid with pre-tax FLEXPRO dollars.
Part II, Healthcare Account, allows the participant to use pre-tax FLEXPRO dollars to
pay for un-reimbursed health care expenses, including medical and dental deductibles
and coinsurance amounts.




                                          14
Part III, Dependent care, allows the participant to pay for dependent care expenses that
are necessary to allow you to work. Eligible expenses include care provided outside the
participant’s home at a sitter’s residence, charges by a licensed daycare facility,
schooling costs for children below kindergarten, and dependent care in the
participant’s home.
Although FLEXPRO can provide significant savings to most employees by reducing
taxable income, the program may not be appropriate for everyone. A detailed
description of the plan is available from the Human Resources office.

Social Security Fifty percent of Social Security taxes are paid by the employer.

Workers Compensation Employees are covered by Workers Compensation insurance
that pays medical costs and partially compensates workers for time lost if injured on
the job in an occupational related accident.

Continuing Education If time off is needed for an approved continuing education
program, a flexible work schedule shall be made with the executive director or director.

Training Reimbursement Policy Training for World Ministries Center staff is
advantageous to the organization as well as the employee. Training provided by an
outside source may be paid by the department with prior approval from the supervisor.
Employees that receive training that exceeds $1,000 in any calendar year agree to a
service payback to the Free Methodist Church of North America of 25 percent of the
cost per year over four years, should they leave in less than four years. For example, if
a person leaves after two years he/she would reimburse 50 percent of the expense.

Travel Subject to the current income tax regulations and budget guidelines employees
will be reimbursed for approved business-related travel expenses from their ministry
area. Mileage paid for use of personal auto for business travel is set at the rate
currently allowed by the Internal Revenue Service for business purposes.

Break Periods Two fifteen-minute break times are provided daily for employees
working an 8-hour shift.

Snow Days Employees will be given up to two (2) days with pay during one year in the
event of a snow emergency (or other disaster) declared by the civil officials and
announced by the chairman of the Operating Committee or, if unavailable, the
Executive Director of Administration and Finance. In the event that such problems
arise during working hours requiring an employee to leave early, it will be arranged
with and approved by the supervisor.

Worship Employees are expected to be actively involved in a local church and are
encouraged to attend the regularly scheduled devotional times for all staff (on company
time) in recognizing God’s presence and help in our work. Employees are encouraged
to prayerfully reflect each day on their ministry here.




                                            15
Jury Duty An employee will be paid the difference between jury pay received by the
employee and his/her regular pay for all regular straight-time hours missed because of
jury duty.

Light & Life Bookstore Discount Employees are provided with a discount card from the
Light & Life Bookstore for cash and charge card purchases upon presentation of the
discount card. Discounts are for personal use and for gifts. They may not be used to
purchase merchandise for resale or in order to pass a discount on to a friend or church.
Discounts are available immediately upon your employment.

OTHER

Americans with Disabilities Act (ADA) The Free Methodist Church of North America is
committed to complying fully with the Americans with Disabilities Act (ADA) and
ensuring equal opportunity in employment for qualified persons with disabilities. All
employment practices and activities are conducted on a non-discriminatory basis.
Hiring procedures have been reviewed and provide persons with disabilities meaningful
employment opportunities. Requests for reasonable accommodation will be reviewed
on a case-by-case basis. Employment decisions are based on the merits of the situation
in accordance with defined criteria, not the disability of the individual. Qualified
individuals with disabilities are entitled to equal pay and other forms of compensation
(or changes in compensation) as well as in job assignments, classifications,
organizational structures, position descriptions, lines of progression, and seniority lists.
Leave of all types will be available to all employees on an equal basis.

The Free Methodist Church of North America is also committed to not discriminating
against any qualified employees or applicants because they are related to or associated
with a person with a disability. The Free Methodist Church of North America will
follow any state or local law that provides individuals with disabilities greater
protection than the ADA. This policy is neither exhaustive nor exclusive. The Free
Methodist Church of North America is committed to taking all other actions necessary
to ensure equal employment opportunity for persons with disabilities in accordance
with the ADA and all other applicable federal, state, and local laws.

Probationary Period Each employee is hired on a ninety (90) day probationary period.
This gives both the employee and employer time to determine if you and the job are
best suited for each other. A performance review will be conducted within the ninety
(90) day probationary period and the results shared with the employee understanding
that the review will help determine acceptability for continued employment.
Successfully completing this ninety (90) day probationary period does not guarantee
continual permanent employment.

Personal Employment Data Accurate employment records are important. Please keep
the following data current by notifying the Human Resources office:

      Change of address or phone number


                                             16
      Person to be notified in case of accident
      Legal change in your name
      Change in marital status
      Change in number of income tax exemptions
      Change in insurance or pension beneficiary
      Additional education or training received
      Change in family status that would change insurance coverage

Employee Benefits Review Committee The Operating Committee and Director of
Human Resources will serve as the Employee Benefits Review Committee and provide
an interpretation of any employee benefit in place at the World Ministries Center.
Additional benefits requested by employees may also be brought to the Employee
Benefits Review Committee. If a potential “conflict of interest” exists between a
member of the Review Committee and an employee seeking an interpretation of a
benefit, the employee may request, in writing, that the committee member in question
be temporarily replaced by another World Ministries Center employee. The request
shall be discussed by the Employee Benefits Review Committee and a written answer
supplied to the employee before the Committee meets to interpret a benefit policy.

Employment of Relatives The Free Methodist Church of North America believes it is in
the best interest of the World Ministries Center to fill each vacant position with the
most highly qualified person available. In order to ensure that all interested persons
receive consideration, anyone is welcome to submit an application.

When a family member of another employee is being considered for employment, the
hiring supervisor must consult with the Operating Committee member responsible for
the position. If he/she feels the hiring is warranted, he/she will discuss it with the full
Operating Committee. If the Operating Committee approves the hiring of the family
member, the family members will meet with the World Ministries Center Overseer, or
his/her designee, before the hiring is finalized. Relatives of World Ministries Center
employees will not be eligible for employment where potential problems of supervision,
security, or morale exist, or where personal relationships may create conflicts of
interest.

During this interview, the Overseer will explain that family relationships within the
World Ministries Center must remain on a professional level and not be allowed to
interfere with the work environment or violate confidentiality. If, after this interview,
the Overseer determines the employment of the family member is in the best interest of
the organization, he/she will notify the hiring supervisor that the hiring may proceed.

NOTE: A family member includes a spouse, son, daughter, parent, sister, brother,
grandchild, grandparent and any in-law.

Dress Guidelines Employees, as followers of Christ, are expected to be neat, clean and
modest in their appearance and to dress in agreement with commonly accepted business
and professional standards. For men, normal day-to-day attire is to be dress pants,


                                            17
dress shirt, tie, jacket, and dress shoes, though business casual is also acceptable. For
women, normal day-to-day attire is to be dresses, blouses, skirts and or slacks, and
dress shoes, though business casual is also acceptable. Casual work clothes are
acceptable for warehouse and maintenance personnel. The Bookstore manager will
establish guidelines for the Light and Life Bookstore personnel. Concerns or appeals
about dress guidelines are to be referred to the Human Resources Director who will
consult with the immediate supervisor and refer concerns or individual exceptions to
the Operating Committee.

Computer Usage Policy This policy is developed for the purpose of providing legal
protection to the World Ministries Center and its employees regarding Internet Access.
The Internet contains information and images of all kinds, without any central or
controlling management. In addition to the valuable resources for research, news, and
recreation, some highly offensive material is present. The World Ministries Center
wants to make maximum use of the Internet resources in a positive way, but employees
must use it in ways that are consistent with the principles and standards of behavior as
found in the Book of Discipline of the Free Methodist Church of North America. All
attempts to protect privacy will be maintained; however, observation and/or
monitoring of traffic flow may be necessary for security and legal reasons.

Guidelines for use: Users should be aware that e-mail messages cannot be considered
private and may be monitored by management. Such messages also may be subject to
disclosure to outside third parties, including the court system and law enforcement
agencies, under certain circumstances. Employees should not send any e-mail messages
they would not want to have seen by persons other than the intended recipients.

There is an obligation on the part of all those who use these resources to respect the
intellectual and access-rights of others who use them. It is critical that computer use be
performed in an ethical manner which ensures the use of these resources to foster the
goals and objectives of the World Ministries Center. Electronic mail facilities, Web
pages, and other electronic resources are for World Ministries Center Activities. The
system is not to be used to solicit or address others on non-work related matters.
Fraudulent, harassing or slanderous messages and/or materials are not to be sent or
stored. Obscene, pornographic, sexually explicit, or offensive material is not allowed to
be accessed, sent or stored on World Ministries Center equipment. It is a violation of
World Ministries Center policy to use company computers or network resources for
access for access, storage or transfer of objectionable or inappropriate material. The e-
mail systems should not be considered secure or private. Therefore, messages and
information sent via e-mail should not be confidential in nature. Use only your own
account and password. Never misrepresent yourself as another user; use only as a
vehicle for business related communications and activities of research or direct support
of our mission. The use of any computer must be consistent with the World Ministries
Center standards. Using the network for recreational games during work hours or for
private or personal business is not permitted. Keep passwords and accounts
confidential. Take appropriate safety measures with regard to account access by:




                                           18
choosing difficult-to-guess passwords, changing passwords frequently, and not leaving
terminals unattended without logging out.

Enforcement and Violations: All employees are to participate in assuring legal and
ethical use of World Ministries Center computers and user accounts. Violations of this
policy may be monitored through a building-wide individual computer-usage-monitor
system. This software records all Web page access and management reserves the right
to inspect the record of site visits. Any violation of this policy should be reported to a
member of the Operating Committee. Violations of this policy may result in
disciplinary action up to and including dismissal.

Work Guidelines The workweek begins Monday morning and ends on Saturday
afternoon. In the interpretation of all policies, a week shall be forty hours at straight
time, and a day shall be eight hours at straight time. Official office hours are from 8:00
a.m. through 5:00 p.m. Monday through Friday. With the approval of the executive
director or director, an employee may be granted an earlier or later start time and
quitting time.

Working at Home This benefit is available provided the type of position and availability
of equipment can be worked out and is approved by the executive director or director.

Unemployment Compensation No contributions are made by the World Ministries
Center toward unemployment insurance benefits. Church organizations are exempt.
This means that terminated employees receive no benefits through the Indiana
Unemployment Insurance Commission as it relates to their employment with the Free
Methodist Church of North America.

Personal Business Church committee work or other activities not related to employment
are not to be performed on company time. Personal phone calls during working hours
are to be restricted to emergencies. Incoming private calls are discouraged.

Lifestyle and Conduct Employees are expected to follow rules of common decency and
morality in matters of behavior and language and to show respect for property of
others. Since the use of tobacco, intoxicating beverages and illegal drugs is
incompatible with our total ministry, and since the Free Methodist Church requires its
members to abstain from these, employees are expected to take this into account in
their personal conduct so as not to disqualify themselves from continuing in this
ministry.

Voting In accordance with Indiana election laws, employees may be absent from their
work stations as long as necessary to vote - - up to four hours - - without pay.

Absences Provisions are made for absences. It is important that the employee’s time
sheet is marked and approved, indicating the reason for each absence. Excessive
absences may result in dismissal. The Free Methodist Church of North America carries




                                            19
insurance to compensate workers for time lost if injured in any occupationally related
work.

Leave of Absence A leave of absence up to six months without pay is permissible if
approved by the executive director or director of the department. At the end of the six
months, employees will be considered for their former positions or like available
positions for which they are qualified, but the employee is not guaranteed a job. An
employee who fails to report to work at the end of an approved Leave of Absence will
be deemed to have voluntarily resigned. Vacation and other benefits will not continue
to accrue during a leave of absence.

Minors in the Work Place It is expected that minor children of employees will not be
present in the World Ministries Center except in extraordinary circumstances. Minor
children of employees of the World Ministries Center are to be in the company of the
parent or guardian, providing the supervisor of the employee has agreed to the
arrangement. This should not happen on a regular basis. These guidelines apply seven
days a week, 24 hours a day.

Telephones It is desirable to have each ministry area’s phones covered on a regular
basis. An employee may be asked to arrange a break or lunch period to provide the
necessary coverage.

Company Equipment Employees and their dependents may use office equipment and
computers after office hours for personal study-related work. This use shall be
restricted to specified equipment designated by the supervisor and shall be supervised
by the employee. The employee will pay for supplies at cost.

Accident Reporting On-the-job accidents, injuries, and illnesses, regardless of how
minor, are to be reported to a supervisor immediately. The Human Resources office is
also to be notified. Failure to do so may disqualify the employee from Workers’
Compensation benefits or an excused absence. An employee will be paid at the
employee’s regular straight-time hourly wage rate for time actually and necessarily lost
from available work during the first eight hours of any shift during which the employee
suffers an occupational disability compensable under the Workers’ Compensation and
Occupational Diseases Law of the State of Indiana while at the employee’s work for the
Free Methodist Church of North America.

Lost and Found The Free Methodist Church of North America is not able to accept
responsibility for lost property. Please do not leave valuable items unattended. Please
report lost (or found) items to a supervisor.

Safety Everyone must assume responsibility for a safe workplace. Keep aisles clear and
your immediate place of work as hazard free as possible. Unsafe conditions should be
reported and corrected immediately. Safety suggestions are welcome. Take time to be
safe!




                                           20
Solicitation Any in-office collections, solicitations or sale of items are to be approved by
the supervising executive director or director.

Visitors We warmly welcome all visitors. All visitors are to report to the receptionist.
Guided tours are provided. Salesmen, collectors, and politicians are not to contact
employees for personal business during working hours.

Fire Prevention Please familiarize yourself with extinguisher locations and uses.
Employees should locate the nearest exit(s) which could be used depending on the
location of the fire. In case of fire, notify the switchboard operator (dial 0) or pull a fire
alarm.

Records Retention Personnel files and other files will be transferred to the World
Ministries Center archives according to the World Ministries Center retention
schedule. The provisions of the Privacy Act (1974) and World Ministries retention
policy will control their use.

PERFORMANCE REVIEWS

Employee An employee will receive a performance evaluation as part of the 90-day
probationary period and an annual performance evaluation during November or
December of each year by the employee’s immediate supervisor. The evaluation results
will be shared with the employee to provide constructive suggestions for improvement.
Record of outstanding performance shall be noted. All evaluations will be filed with the
Human Resources office.

Director An annual written evaluation and review of each director will be conducted
during November and December. Copies of these reviews, along with any written
comments from the director, will be made a part of the director’s permanent personnel
file. Upon request, these reports may be made available to the World Ministries Center
overseer.

Executive Director The World Ministries Center overseer will be the on-site
representative of the Board of Bishops with respect to executive directors in all
operational matters and evaluations affecting leadership directions, including
appropriate consultations with the committee chairs of the Board of Administration.
The basis for each performance review will be a current position description.

GRIEVANCE PROCEDURE

The general policy of the Free Methodist Church is to settle complaints and
disagreements peacefully following the law of love and the principles laid down by our
Lord in such passages as Matthew 5:23-25. It is expected, therefore, that individuals in
a conflict situation will first make every effort as Christian brothers and sisters to reach
an amicable understanding.




                                              21
It is recognized, however, that a policy can facilitate the process in certain kinds of
grievances. Where the ordinary avenues of Christian conciliation as described above
are not successful, the following procedures may be utilized if the individual who
believes he is aggrieved desires to use it. The principles governing the whole process are
those of Christian love and concern for equity and justice.

Nothing in this policy or grievance procedure shall imply or constitute a contractual
right, and the Church under its Book of Discipline reserves the absolute right to amend
this policy and procedure at any time.

An appropriate grievance is defined as an employee’s dissatisfaction concerning any
interpretation or application of a work-related policy by management or supervisors.
Examples of matters which may be causes of grievances appropriate under this policy
include:

A belief that Church policies, practices, rules, regulations, or procedures have been
improperly applied in a manner detrimental to an employee; treatment considered
unfair by an employee, such as coercion, reprisal, harassment, or intimidation; alleged
discrimination because of race, color, gender, age, national origin, marital status, or
disabled status; and claimed improper or unfair administration of employee benefits or
conditions of employment such as scheduling, vacations, fringe benefits, promotions,
retirements, holidays, performance review, salary, or seniority.

Employees will not be penalized for proper use of the grievance procedure. However, it
is not considered proper if an employee abuses the procedure by raising grievances in
bad faith or solely for the purposes of delay or harassment, or by repeatedly raising
grievances that a reasonable person would judge to have no merit. However,
implementation of the grievance procedure by an employee does not limit the right of
the company/denomination to proceed with any disciplinary action which is not in
retaliation for the proper use of the grievance procedure or to terminate the employee’s
employment at anytime with or without cause.

The grievance procedure has a maximum of four steps, but grievances may be resolved
at any step in the process. Grievances are to be fully processed until the employee is
satisfied, or does not file a timely appeal, or pursue the right of appeal to final decision.
A decision becomes binding on all parties whenever an employee does not file a timely
appeal or when a decision is made in the final step and the right of appeal no longer
exists.

Employees who feel they have an appropriate grievance shall proceed as follows:

      Step One In Christian grace, work diligently to resolve any grievance with the
       offender, applying the teachings of Jesus in such passages as Matthew 5:23-25
       and 18:15-17.




                                             22
      Step Two If there is no resolution from step one, promptly submit your grievance
       in writing to your immediate supervisor who will inform, in writing, the Human
       Resources office. The supervisor will investigate the grievance, attempt to
       resolve it, and provide a decision in writing to the employee(s) within a
       reasonable time. The supervisor should prepare a written and dated summary
       of the grievance and proposed resolution for file purposes. If the grievance
       involves the supervisor, then it is permissible to proceed directly to Step Three.

      Step Three If there is no resolution from step one or two, promptly appeal to the
       Operating Committee. An Operating Committee member directly involved with
       the grievance will not be part of the decision making process. The Operating
       Committee will take the steps necessary to review and investigate the grievance
       and issue a written decision to all parties involved within a reasonable time.
       This will include the employee if he/she is not already directly involved.

DISCLAIMER: If at any time an employee believes that he or she has been the victim of
unlawful discriminatory harassment, the employee is referred to the anti-harassment
policy set forth in this Handbook and may bypass the grievance process in its entirety.

If the above steps fail to bring resolution, then the case is to be referred to a Christian
conciliation service. The decision of this organization will serve as a final and binding
decision on all parties.

Final decisions on grievances will not be precedent-setting or binding on future
grievances unless they are officially stated as World Ministries Center policy. When
appropriate, the decisions will be retroactive to the date of the employee’s original
grievance.

Information concerning an employee’s grievance is to be held in strict confidence.
Supervisors and other members of management who investigate a grievance are to
discuss it only with those individuals who have a need to know about it or who are
needed to supply necessary background information.

Time spent by employees in grievance discussions with management during their
normal working hours will be considered hours worked for pay purposes.



RESIGNATION OR TERMINATION OF EMPLOYEES

The Free Methodist Church of North America is thankful for the many long-tenured
employees at the World Ministries Center. If a change of employment is necessary, the
aim is to make such a change mutually helpful. Employees may be terminated with or
without cause at any time. However, it is important to know the following guidelines:

      An exit interview will be conducted before termination of employment.


                                            23
      Employees resigning positions are requested to give a minimum of two weeks’
       written notice of resignation and supervisors a minimum of 30 days’ written
       notice. The payment of accrued vacation pay is dependent upon the employee
       giving the minimum written notice. In the absence of the proper notice, an
       employee forfeits all accrued but unused vacation pay.
      The final check is issued on the next regular payday. Provision for receiving the
       check is to be determined at the time of the exit interview.
      The employee is expected to turn in the discount card, keys and other employer’s
       property at the time of the exit interview.
      Insurance matters are to be finalized prior to or at the time of the exit interview.
      In cases of gross misconduct, dishonesty and similar situations, the employer
       may immediately discharge an employee.

The Free Methodist Church of North America follows the concept of progressive
discipline according to the following procedure, which means that appropriate action is
based on the seriousness of the situation and the circumstances. The Free Methodist
Church of North America and its managers, supervisors and agents reserve the right to
bypass any or all of the following steps to respond appropriately to the severity of any
particular situation. Discipline less than termination will normally include a verbal
reminder, a written reminder and a final written reminder from the supervisor:

      Verbal Reminder For minor instances of misconduct the employee is verbally
       reminded of work standards and a notation is made in the employee’s
       performance review records.
      Written Reminder This more serious step is documented permanently in the
       employee’s personnel file.
      Final Written Reminder The employee is given thirty (30) days in which to
       improve performance/changed behavior. If satisfactory progress is not made,
       employment is terminated.

Prior to any employer - initiated termination for unsatisfactory work, the employee
shall have the opportunity to discuss the areas of concern with his/her supervisor.
Ordinarily, employees shall not be terminated without first having been part of an
objective evaluation and given adequate time to achieve satisfactory improvement.

This disciplinary policy does not apply during the 90-day probationary period;
however, documentation of discussions regarding performance and termination during
this period is required.

SEVERANCE PAY

If a full-time employee is let go due to the elimination of a position, one month’s
severance pay and benefits will be given to that employee. No severance pay shall be
given if the separation occurs within the 90-day probationary period. Part-time
employees shall receive a pro-rated severance pay based on hours employed per week.
Employees released for cause shall not be entitled to severance pay.


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RETIREMENT

The experience and wisdom of retirees is prized. Counsel and oversight from them will
be helpful because they represent a great asset to the church. They have invested their
lives in its ministry. The denomination has an investment in them from which it can
benefit in their retirement years. However, in recognition that successor employees will
be assuming their responsibilities, all committee and other World Ministries Center
assignments associated with the employee role will automatically terminate upon
retirement. Exceptions, if any, will be by specific action in individual instances.

      Age Considerations Under the defined benefit pension plan those having full
       vesting can elect to retire and receive a benefit as early as age 60. Those persons
       retiring between the ages of 60 and 65 but with less than ten years of vested
       service will receive no pension benefits until age 65. We will comply with any
       applicable laws and regulations relative to age discrimination.

      Pension Guidelines and eligibility are determined by the policies established by
       the Benefits Committee and approved by the Board of Administration.

      Medical Insurance Retired employees may participate in the denominational
       health plan until age 65 if they pay 100% of the premium. A Medicare
       supplement plan is available for those over age 65. The cost will be the
       responsibility of the retired employee.

ADDITIONAL BENEFIT POLICIES FOR BISHOPS, EXECUTIVE DIRECTORS AND
DIRECTORS

Enrichment Leave Upon completion of each seven (7) years of executive service with the
Free Methodist Church of North America an executive director is eligible to be
considered for an Enrichment Leave of up to thirteen (13) weeks. Regular salary and
benefits are paid during the Enrichment Leave. The purpose, nature and length of the
Enrichment Leave are subject to the recommendation of the executive director or
supervisor and approval by the Operating Committee. Bishops are granted such leave
every five years with approval being given by the Board of Administration.

Health/Wellness In harmony with biblical teaching and denominational standards each
bishop, executive director and director should strive to maintain the best physical
health and well-being possible including: appropriate diet, adequate rest, regular
exercise, and wise use of time and energy. This is in the best interest of the individual.
Each bishop, executive director, and director is encouraged to have a physical
examination according to the following schedule: those 49 years of age and younger
every two (2) calendar years; those 50 years of age and older every calendar year. Our
denominational health insurance plan will pay a portion of the expense. The remainder
may be covered through departmental funding.



                                            25
Honoraria Bishops, executive directors and directors may keep royalties paid for
writing and honoraria received for speaking engagements or other services performed
when the writing, speaking, or services are done on personal time and at personal
expense. Honorarium or travel compensation received for ministry rendered on
company/denominational time or expense shall be remitted to the executive’s cost
center. In using his/her time and energy the executive must exercise care to maintain a
healthy, appropriate balance between personal engagements and his/her primary
responsibility for building up the church through departmental ministry.

Ministry Time Executives may be granted up to two weeks paid time to serve in non-job
related Free Methodist ministries. Such time is contingent upon a presentation of the
proposed activity and its approval by the Operating Committee.

Moving Expenses For moves with rented or borrowed equipment the full reasonable
out-of-pocket expenses will be reimbursed. A commercial move is subject to the
following guidelines: All items such as packing, packing cartons, wardrobes, preparing
appliances, extra pick-ups, etc. are classified personal and will not be paid for. There is
a weight limit of 12,000 pounds on all moves. Weight beyond this becomes a personal
expense.




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27
ACKNOWLEDGEMENT OF RECEIPT OF HANDBOOK

This is to certify that I have read this employee handbook and am familiar with its
contents. I understand that it is not a binding contract but a set of guidelines for the
implementation of personnel policies. I understand that Free Methodist Church of
North America may modify any of the provisions of this handbook at any time, with or
without notice, and may deviate from any provision of this handbook in its sole
discretion. I also understand that, notwithstanding any of the provisions of this
handbook, I am employed on an at-will basis. My employment may be terminated at
any time, either by me or by the Church, with or without cause. I acknowledge that I
do not in any way rely upon the provisions of this employee handbook in accepting or
continuing my employment with the Church.


_________________________________
Employee Signature


_________________________________
Employee Name (Printed)


_________________________________
Date




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Description: Exercise 16 Employee Exit Interview document sample